An Act to impose duties of Customs, to repeal the Customs Tariff Act 1987, and for related purposes

Administered by: Immigration and Border Protection

General Comments:
This compilation is affected by retrospective amendments. Please see the Customs Tariff Amendment (Incorporation of Proposal and Other Measures) Act 2017 (Act No. 82, 2017) for details.

This is a compilation of the Customs Tariff Act 1995 that shows the text of the law as amended and in force on 1 July 2017 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Editorial changes

For more information about any editorial changes made in this compilation, see the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

This Guide aims to give a general overview of the operation and organisation of this Act.

The operation of the Act

The Act imposes Customs duty on goods imported into Australia.

To work out the duty payable on particular goods reference must be made to a Principal Tariff that is set out in Schedule 3. This tariff classifies goods in accordance with Australia’s international obligations as a party to the World Trade Organization Agreement.

Note: The text of the Agreement is set out in Australian Treaty Series 1995 No. 8. In 2004 this was available in the Australian Treaties Library of the Department of Foreign Affairs and Trade, accessible through that Department’s website.

The rate of duty applicable to particular goods is determined by the classification to which those goods belong and, in most cases, by reference to Schedule 3. However, the rate of duty for US originating goods is determined under Schedule 5, the rate of duty for Thai originating goods is determined under Schedule 6, the rate of duty for Chilean originating goods is determined under Schedule 7, the rate of duty for ASEAN‑Australia‑New Zealand (AANZ) originating goods is determined under Schedule 8, the rate of duty for Malaysian originating goods is determined under Schedule 9, the rate of duty for Korean originating goods is determined under Schedule 10, the rate of duty for Japanese originating goods is determined under Schedule 11 and the rate of duty for Chinese originating goods is determined under Schedule 12.

Under Schedule 4, goods imported into Australia in specified circumstances, including goods imported for use by particular persons or bodies or in particular industries, may be subject to a lesser rate of duty than the nominal rate applying under Schedule 3, 5, 6, 7, 8, 9, 10, 11 or 12.

Rates of duty under Schedules 3, 5, 6, 7, 8, 9, 10, 11 and 12, and concessional rates of duty under Schedule 4, may vary according to the date of importation of the goods concerned, the country or place from which the goods are imported, or both of these circumstances.

The organisation of the Act

The Act consists of 3 Parts and several Schedules.

Part 1 deals with key concepts required for an understanding of the organisation and operation of the Customs Tariff.

Part 2 imposes Customs duty and sets out the method for working out the duty that is payable in respect of particular goods.

Part 3 includes a regulation making power, repeals the Customs Tariff Act 1987 with effect from 1 July 1996 and provides details of its final operation.

Schedule 2 sets out the general rules of interpretation for deciding the tariff classification within the Principal Tariff to which goods belong.

Schedule 3 sets out the Principal Tariff.

Schedule 4 identifies classes of goods to which concessional rates may apply and specifies the concessional rates of duty potentially applicable to such classes.

abbreviation, in relation to a country or place specified in Schedule 1 to the regulations, means the abbreviation specified in that Schedule opposite to the name of that country or place.

amount of duty includes no duty.

capable of being produced in Australia has the same meaning as in Part XVA of the Customs Act 1901.

Chapter means a Chapter of a Section in Schedule 3.

column means a column of a Schedule.

Comptroller‑General of Customs means the person who is the Comptroller‑General of Customs in accordance with subsection 11(3) or 14(2) of the Australian Border Force Act 2015.

constituent, in relation to goods, includes:

(a) a part, a component, or an ingredient, of the goods; and

(b) an accessory for the goods.

Convention means the International Convention on the Harmonized Commodity Description and Coding System done at Brussels on 14 June 1983.

Developing Country means:

(a) a country that is a Developing Country under paragraph 12(d); or

(b) a place that is treated as a Developing Country under paragraph 12(e); or

duty means a duty of Customs imposed by section 15.

Educational, Scientific and Cultural Materials Agreement means the Agreement on the Importation of Educational, Scientific and Cultural Materials, done at Florence on 17 June 1950.

Note: The text of the Agreement is set out in Australian Treaty Series 1992 No. 12 ([1992] ATS 12). In 2012, the text of an Agreement in the Australian Treaty Series was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).

Educational, Scientific and Cultural Materials Protocol means the Protocol to the Educational, Scientific and Cultural Materials Agreement, being the Protocol done at Nairobi on 26 November 1976.

Note: The text of the Protocol is set out in Australian Treaty Series 1992 No. 13 ([1992] ATS 13). In 2012, the text of a Protocol in the Australian Treaty Series was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).

Forum Island Country means a country that is a Forum Island Country under paragraph 12(a).

general rate means a rate of duty other than a rate that applies in relation to a Preference Country.

heading means a heading in Schedule 3.

in the ordinary course of business has the same meaning as in Part XVA of the Customs Act 1901.

Interpretation Rules means the General Rules for the Interpretation of the Harmonized System provided for by the Convention, as set out in Schedule 2.

Least Developed Country means a country or place that is, or is treated as, a Least Developed Country under paragraph 12(b) or 12(c).

petroleum activity means any activity relating to any of the following operations:

(a) petroleum exploration operations;

(b) operations for the recovery of petroleum;

(c) operations relating to the processing or storage of petroleum;

(d) operations relating to the preparation of petroleum for transport;

(e) operations connected with the construction or operation of a pipeline, within the meaning of the Offshore Petroleum and Greenhouse Gas Storage Act 2006.

Preference Country means:

(b) Papua New Guinea; or

(c) a Forum Island Country; or

(d) a Least Developed Country; or

(e) a Developing Country; or

(f) Canada; or

(g) Singapore.

produced in Australia has the same meaning as in Part XVA of the Customs Act 1901.

rate column means:

(a) the third column of Schedule 3; or

(b) the third column of Schedule 4; or

(c) the third column of the table in Schedule 5; or

(d) the third column of the table in Schedule 6; or

(e) the third column of the table in Schedule 7; or

(f) the third column of the table in Schedule 8; or

(g) the third column of the table in Schedule 9; or

(h) the third column of the table in Schedule 10; or

(i) the third column of the table in Schedule 11; or

(j) the third column of the table in Schedule 12.

registered charity means an entity that is registered under the Australian Charities and Not‑for‑profits Commission Act 2012 as the type of entity mentioned in column 1 of item 1 of the table in subsection 25‑5(5) of that Act.

subheading means a subheading of a heading.

substitutable goods has the same meaning as in Part XVA of the Customs Act 1901.

Tariff instrument means:

(a) a Customs Tariff Proposal introduced (whether before or after the commencement of this Act) into the House of Representatives; or

(b) a Notice published (whether before or after the commencement of this Act) in accordance with section 273EA of the Customs Act 1901; or

(c) an order, a by‑law or a determination made (whether before or after the commencement of this Act) under the Customs Act 1901.

tobacco content includes any thing (including moisture) added to the tobacco leaf during manufacturing or processing.

value means the customs value of the goods worked out or determined in accordance with Division 2 of Part VIII of the Customs Act 1901.

(1) In Schedule 4, a number, or a number and letter, in the first column indicates the beginning of an item.

(2) In this Act or in any Act that amends, or in any Tariff instrument that relates to, this Act, an item in Schedule 4 may be referred to by the word “item” followed by the number, or the number and letter, with which the item begins.

(1) The Interpretation Rules must be used for working out the tariff classification under which goods are classified.

(2) If the letters “NSA” are specified in relation to a description of goods in the second column of a subheading of a heading, the goods described do not include any goods prima facie classified under a preceding subheading of that heading whose second column begins with the same number of dashes as the first‑mentioned subheading.

(3) A reference in the Interpretation Rules to Notes includes a reference to Additional Notes.

Note 1: The text in Schedule 3 is based on the wording in the Harmonized Commodity Description and Coding System that is referred to in the International Convention on the Harmonized Commodity Description and Coding System done at Brussels on 14 June 1983.

Note 2: The text of the Convention is set out in Australian Treaty Series 1988 No. 30. In 2006, the text of a Convention in the Australian Treaty Series was accessible through the Australian Treaties Library on the AustLII website (www.austlii.edu.au).

(1) Subject to subsection (2), an item in Schedule 4 applies to goods if the goods are described in the second column of that item.

(2) If goods are described in the second column of 2 or more items in Schedule 4, the item in that Schedule that applies to the goods is:

(a) the item under which the least amount of duty would be payable in respect of the goods; or

(b) if there are 2 or more such items, the last occurring such item.

(3) For the purposes of Schedule 4:

(a) a reference to a Tariff Concession Order includes a reference:

(i) to a commercial tariff concession order made under Part XVA of the Customs Act 1901 as in force immediately before the commencement of the Customs Legislation (Tariff Concessions and Anti‑Dumping) Amendment Act 1992; and

(ii) to a commercial tariff concession order made under that Part as continued in force by section 20 of the Customs Legislation (Tariff Concessions and Anti‑Dumping) Amendment Act 1992; and

(b) a reference to section 269Q of the Customs Act 1901 includes a reference:

(i) to subsection 269C(1A) of the Customs Act 1901 as in force immediately before the commencement of the Customs Legislation (Tariff Concessions and Anti‑Dumping) Amendment Act 1992; and

(ii) to that subsection as continued in force by section 20 of the Customs Legislation (Tariff Concessions and Anti‑Dumping) Amendment Act 1992.

(1) Unless the contrary intention appears, if, in a rate column in Schedule 3, 4, 5, 6, 7, 8, 10, 11 or 12, reference is made to a percentage in relation to goods or in relation to a part, component or ingredient of goods:

(a) the reference is to that percentage of the value of the goods, or of that part, component or ingredient of the goods, as the case may be; and

(b) the percentage is a rate of duty.

(2) The value of a part, component or ingredient of any goods for the purposes of this Act is, unless the contrary intention appears, such proportion of the value of the goods as the Comptroller‑General of Customs determines.

For the purposes of this Act, goods are the produce or manufacture of a country or place only if they are, under Division 1A or Division 1B of Part VIII of the Customs Act 1901, the produce or manufacture of that country or place for the purposes of that Act.

(a) a rate of duty set out in a rate column applies in relation to New Zealand if “NZ” is specified in relation to the rate; and

(b) a rate of duty so set out applies in relation to Papua New Guinea if “PG” is specified in relation to the rate; and

(c) a rate of duty so set out applies in relation to every Forum Island Country specified in Part 1 of Schedule 1 to the regulations if “FI” is specified in relation to the rate; and

(d) a rate of duty so set out applies in relation to every Least Developed Country specified in Part 2 of Schedule 1 to the regulations if “LDC” is specified in relation to the rate; and

(e) a rate of duty so set out applies in relation to every Developing Country specified in Part 3 of Schedule 1 to the regulations if “DC” is specified in relation to the rate; and

(f) a rate of duty so set out applies in relation to every Developing Country specified in Part 4 of Schedule 1 to the regulations (other than a Developing Country or place specified in paragraph (g)) if “DCS” is specified in relation to the rate; and

(g) a rate of duty so set out applies in relation to a Developing Country or place specified in Part 5 of Schedule 1 to the regulations if “DCT” is specified in relation to the rate; and

(h) a rate of duty so set out applies in relation to a particular Forum Island Country, Least Developed Country or Developing Country if its name, or the abbreviation for it, is specified in relation to the rate; and

(i) a rate of duty so set out applies in relation to Canada if “CA” is specified in relation to the rate; and

(j) a rate of duty so set out applies in relation to Singapore if “SG” is specified in relation to the rate; and

(k) a rate of duty set out in a rate column in Schedule 4 applies in relation to the United States of America if “US” is specified in relation to the rate; and

(l) a rate of duty set out in a rate column in Schedule 4 applies in relation to Japan if “JP” is specified in relation to the rate.

(2) A rate of duty set out in a rate column in relation to which “FI”, “LDC”, “DC”, “DCS” or “DCT” is specified does not apply in relation to a Forum Island Country, a Least Developed Country or a Developing Country if that country or the abbreviation for it appears in a rate column followed by a rate of duty.

(1) Subject to sections 17, 18, 20 and 22, the duty in respect of goods must be worked out as follows:

(a) if the goods:

(i) are not the produce or manufacture of a Preference Country; and

(ii) are not US originating goods; and

(iii) are not Thai originating goods; and

(iv) are not New Zealand originating goods; and

(v) are not Chilean originating goods; and

(vi) are not AANZ originating goods; and

(vii) are not Malaysian originating goods; and

(viii) are not Korean originating goods; and

(ix) are not Japanese originating goods; and

(x) are not Chinese originating goods;

by reference to the general rate set out in the third column of the tariff classification under which the goods are classified;

(b) if the goods are New Zealand originating goods:

(i) if a rate of duty that applies in relation to New Zealand is set out in the third column of the tariff classification under which the goods are classified—by reference to that rate of duty; or

(ii) otherwise—Free;

(c) if the goods are the produce or manufacture of Papua New Guinea:

(i) if a rate of duty that applies in relation to Papua New Guinea is set out in the third column of the tariff classification under which the goods are classified—by reference to that rate of duty; or

(ii) otherwise—Free;

(d) if the goods are the produce or manufacture of Canada:

(i) if a rate of duty that applies in relation to Canada is set out in the third column of the tariff classification under which the goods are classified—by reference to that rate of duty; or

(ii) otherwise—by reference to the general rate of duty set out in the third column of that tariff classification;

(e) if the goods are the produce or manufacture of a Forum Island Country:

(i) if a rate of duty that applies in relation to Forum Island Countries is set out in the third column of the tariff classification under which the goods are classified—by reference to that rate of duty; or

(ii) otherwise—Free;

(f) if the goods are the produce or manufacture of a Developing Country or place specified in Part 5 of Schedule 1 to the regulations:

(i) subject to subparagraphs (ii) and (iii)—by reference to the general rate of duty set out in the third column of the tariff classification under which the goods are classified; or

(ii) subject to subparagraph (iii), if a rate of duty that applies in relation to Developing Countries specified in Part 4 of Schedule 1 to the regulations is set out in the third column of that tariff classification—by reference to that rate of duty; or

(iii) if a rate of duty that applies in relation to a Developing Country or place specified in Part 5 of Schedule 1 to the regulations is set out in the third column of that tariff classification—by reference to that rate of duty;

(g) if the goods are the produce or manufacture of a Developing Country specified in Part 4 of Schedule 1 to the regulations (other than Hong Kong, Republic of Korea, Singapore or Taiwan Province):

(i) if a rate of duty that applies in relation to those Developing Countries is set out in the third column of the tariff classification under which the goods are classified—by reference to that rate of duty; or

(ii) otherwise—by reference to the general rate of duty set out in the third column of that tariff classification;

(h) if the goods are the produce or manufacture of a Developing Country specified in Part 3 of Schedule 1 to the regulations:

(i) if a rate of duty that applies in relation to those Developing Countries is set out in the third column of the tariff classification under which the goods are classified—by reference to that rate of duty; or

(ii) otherwise—Free;

(i) if, under section 153H or 153NA of the Customs Act 1901, the goods are the produce or manufacture of a Least Developed Country:

(i) if a rate of duty that applies in relation to Least Developed Countries is set out in the third column of the tariff classification under which the goods are classified—by reference to that rate of duty; or

(ii) otherwise—Free;

(j) if the goods are the produce or manufacture of Singapore under Division 1B of Part VIII of the Customs Act 1901:

(i) if a rate of duty that applies in relation to Singapore is set out in the third column of the tariff classification under which the goods are classified—by reference to that rate of duty; or

(ii) otherwise—Free;

(k) if the goods are US originating goods:

(i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 5—by reference to the rate of duty set out in column 3 of that item; or

(ii) otherwise—Free;

Note: See also subsection (2).

(l) if the goods are Thai originating goods:

(i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 6—by reference to the rate of duty set out in column 3 of that item; or

(ii) otherwise—Free;

(m) if the goods are Chilean originating goods:

(i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 7—by reference to the rate of duty set out in column 3 of that item; or

(ii) otherwise—Free;

Note: See also subsection (2A).

(n) if the goods are AANZ originating goods:

(i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 8—by reference to the rate of duty set out in column 3 of that item; or

(ii) otherwise—Free;

Note: See also subsections (3) and (4).

(o) if the goods are Malaysian originating goods:

(i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 9—by reference to the rate of duty set out in column 3 of that item; or

(ii) otherwise—Free;

(p) if the goods are Korean originating goods:

(i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 10—by reference to the rate of duty set out in column 3 of that item; or

(ii) otherwise—Free;

(q) if the goods are Japanese originating goods:

(i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 11—by reference to the rate of duty set out in column 3 of that item; or

(ii) otherwise—Free;

(r) if the goods are Chinese originating goods:

(i) if the goods are classified to a heading or subheading in Schedule 3 that is specified in column 2 of an item in the table in Schedule 12—by reference to the rate of duty set out in column 3 of that item; or

(ii) otherwise—Free.

Note: See also subsection (4A).

US originating goods

(2) If column 2 of an item in the table in Schedule 5 includes “(prescribed goods only)”, subparagraph (1)(k)(i) does not apply to the goods unless the goods are also prescribed for the purposes of that item.

Note: If column 2 of an item in the table in Schedule 5 includes “(prescribed goods only)” and the goods are not prescribed for the purposes of that item, the rate of duty in respect of the goods is Free.

Chilean originating goods

(2A) If column 2 of an item in the table in Schedule 7 includes “(prescribed goods only)”, subparagraph (1)(m)(i) does not apply to the goods unless the goods are also prescribed for the purposes of that item.

Note: If column 2 of an item in the table in Schedule 7 includes “(prescribed goods only)” and the goods are not prescribed for the purposes of that item, the rate of duty in respect of the goods is Free.

AANZ originating goods

(3) If column 2 of an item in the table in Schedule 8 includes “(prescribed goods only)”, subparagraph (1)(n)(i), insofar as it relates to that item, does not apply to the goods unless the goods are also prescribed by the regulations for the purposes of that item.

Note: If column 2 of an item in the table in Schedule 8 includes “(prescribed goods only)” and the goods are not prescribed for the purposes of that item or any other item, the rate of duty in respect of the goods is Free.

(4) If:

(a) the goods are AANZ originating goods; and

(b) the goods are classified to a subheading in Schedule 3 that is specified in column 2 of any of items 341 to 365 in the table in Schedule 8;

then:

(c) subparagraph (1)(n)(i) does not apply to the goods unless the goods are imported from a country specified in column 3 of the item concerned; and

(d) if that subparagraph does apply—the rate of duty in relation to the goods is the rate set out in column 3 of the item concerned in relation to that country.

Chinese originating goods

(4A) For the purposes of Schedule 12:

(a) a reference in that Schedule to year 2 is a reference to the first calendar year beginning after the commencement of this subsection; and

(b) a reference in that Schedule to year 3 is a reference to the second calendar year beginning after the commencement of this subsection; and

(c) a reference in that Schedule to year 4 is a reference to the third calendar year beginning after the commencement of this subsection; and

(d) a reference in that Schedule to year 5 is a reference to the fourth calendar year beginning after the commencement of this subsection.

Least rate of duty

(5) If, apart from this subsection, more than one paragraph of subsection (1) would apply in relation to the goods, then the paragraph that does apply in relation to the goods is the paragraph in respect of which the least amount of duty would be payable in respect of the goods.

(1) Subject to sections 18, 20 and 22, if the tariff classification under which goods are classified contains 2 or more phrases that describe goods and begin with the words “In respect of’’, the duty payable in respect of the first‑mentioned goods is:

(a) if the first‑mentioned goods have as constituents goods to which 2 or more of the phrases relate—the sum of the amounts of the duty, worked out in accordance with subsection (3), in respect of each of the goods to which those phrases respectively relate; or

(b) if the first‑mentioned goods are, or have as constituents, goods to which only one phrase relates—the amount of duty, worked out in accordance with subsection (3), in respect of the goods to which that phrase relates.

(2) If the words “In respect of remainder” appear in a tariff classification under which goods are classified, those words constitute a phrase for the purposes of this section and the word “remainder” appearing in that phrase must be taken to be a description of:

(a) all goods that can be constituents of goods that can be classified under the tariff classification; and

(b) all goods that can be classified under the tariff classification;

other than goods to which another phrase contained in that tariff classification relates.

(3) The duty in respect of constituent goods to which a phrase referred to in subsection (1) relates worked out in accordance with section 17 must be worked out as if:

(a) the tariff classification under which the complete goods are classified were the tariff classification that contained that phrase; and

(b) the rate of duty or rates of duty specified in the third column of that tariff classification in relation to the constituent goods to which that phrase relates were the only rate or rates set out in that tariff classification.

(1) Subject to sections 20 and 22, if an item in Schedule 4 prima facie applies to goods, that item only applies to those goods if the duty payable in respect of those goods under that item is less than the duty that, apart from this section, would be payable:

(a) under the tariff classification in Schedule 3 that applies to the goods; or

(b) under an item in the table in Schedule 5 that applies to the goods; or

(c) under an item in the table in Schedule 6 that applies to the goods; or

(d) under an item in the table in Schedule 7 that applies to the goods; or

(e) under an item in the table in Schedule 8 that applies to the goods; or

(f) under an item in the table in Schedule 9 that applies to the goods; or

(g) under an item in the table in Schedule 10 that applies to the goods; or

(h) under an item in the table in Schedule 11 that applies to the goods; or

(i) under an item in the table in Schedule 12 that applies to the goods.

(2) For the purposes of subsection (1), the amount of duty payable in respect of goods under an item in Schedule 4 is an amount of duty worked out as follows:

(a) if the goods:

(i) are not the produce or manufacture of a Preference Country; and

(ii) are not US originating goods; and

(iii) are not Thai originating goods; and

(iv) are not New Zealand originating goods; and

(v) are not Chilean originating goods; and

(vi) are not AANZ originating goods; and

(vii) are not Malaysian originating goods; and

(viii) are not Korean originating goods; and

(ix) are not Japanese originating goods; and

(x) are not Chinese originating goods;

by reference to the general rate set out in the third column of that item;

(b) if the goods are New Zealand originating goods:

(i) if a rate of duty that applies in relation to New Zealand is set out in the third column of that item—by reference to that rate of duty; or

(ii) otherwise—Free;

(c) if the goods are the produce or manufacture of Papua New Guinea:

(i) if a rate of duty that applies in relation to Papua New Guinea is set out in the third column of that item—by reference to that rate of duty; or

(ii) otherwise—Free;

(d) if the goods are the produce or manufacture of Canada:

(i) if a rate of duty that applies in relation to Canada is set out in the third column of that item—by reference to that rate of duty; or

(ii) otherwise—by reference to the general rate of duty set out in the third column of that item;

(e) if the goods are the produce or manufacture of a Forum Island Country:

(i) if a rate of duty that applies in relation to Forum Island Countries is set out in the third column of that item—by reference to that rate of duty; or

(ii) otherwise—Free;

(f) if the goods are the produce or manufacture of a Developing Country or place specified in Part 5 of Schedule 1 to the regulations:

(i) subject to subparagraphs (ii) and (iii)—by reference to the general rate of duty set out in the third column of that item; or

(ii) subject to subparagraph (iii), if a rate of duty that applies in relation to Developing Countries specified in Part 4 of Schedule 1 to the regulations is set out in the third column of that item—by reference to that rate of duty; or

(iii) if a rate of duty that applies in relation to a Developing Country or place specified in Part 5 of Schedule 1 to the regulations is set out in the third column of that item—by reference to that rate of duty;

(g) if the goods are the produce or manufacture of a Developing Country or Place specified in Part 4 of Schedule 1 to the regulations, (other than Hong Kong, Republic of Korea, Singapore or Taiwan Province):

(i) if a rate of duty that applies in relation to those Developing Countries is set out in the third column of that item—by reference to that rate of duty; or

(ii) otherwise—by reference to the general rate of duty set out in the third column of that item;

(h) if the goods are the produce or manufacture of a Developing Country specified in Part 3 of Schedule 1 to the regulations:

(i) if a rate of duty that applies in relation to those Developing Countries is set out in the third column of that item—by reference to that rate of duty; or

(ii) otherwise—Free;

(i) if under section 153H or 153NA of the Customs Act 1901 the goods are the produce or manufacture of a Least Developed Country:

(i) if a rate of duty that applies in relation to Least Developed Countries is set out in the third column of that item—by reference to that rate of duty; or

(ii) otherwise—Free;

(j) if the goods are the produce or manufacture of Singapore under Division 1B of Part VIII of the Customs Act 1901:

(i) if a rate of duty that applies in relation to Singapore is set out in the third column of that item—by reference to that rate of duty; or

(ii) otherwise—Free;

(k) if the goods are US originating goods:

(i) if a rate of duty that applies in relation to the United States of America is set out in the third column of that item—by reference to that rate of duty; or

(ii) otherwise—Free;

(l) if the goods are Thai originating goods:

(i) if a rate of duty that applies in relation to Thailand is set out in the third column of that item—by reference to that rate of duty; or

(ii) otherwise—Free;

(m) if the goods are Chilean originating goods:

(i) if a rate of duty that applies in relation to Chile is set out in the third column of that item—by reference to that rate of duty; or

(ii) otherwise—Free;

(n) if the goods are AANZ originating goods:

(i) if “AANZ” is specified in relation to a rate of duty set out in the third column of that item—by reference to that rate of duty; or

(ii) otherwise—Free;

(o) if the goods are Malaysian originating goods:

(i) if a rate of duty that applies in relation to Malaysia is set out in the third column of that item—by reference to that rate of duty; or

(ii) otherwise—Free;

(p) if the goods are Korean originating goods:

(i) if a rate of duty that applies in relation to the Republic of Korea is set out in the third column of that item—by reference to that rate of duty; or

(ii) otherwise—Free;

(q) if the goods are Japanese originating goods:

(i) if a rate of duty that applies in relation to Japan is set out in the third column of that item—by reference to that rate of duty; or

(ii) otherwise—Free;

(r) if the goods are Chinese originating goods:

(i) if a rate of duty that applies in relation to the People’s Republic of China is set out in the third column of that item—by reference to that rate of duty; or

(ii) otherwise—Free.

Least rate of duty

(3) If, apart from this subsection, more than one paragraph of subsection (2) would apply in relation to the goods, then the paragraph that does apply in relation to the goods is the paragraph in respect of which the least amount of duty would be payable in respect of the goods.

(1) If the indexation factor for an indexation day is greater than 1, each CPI indexed rate is, on that day, replaced by the rate of duty worked out using the formula:

Note: For indexation factor see subsection (3). For CPI indexed rate and indexation day see subsection (10).

(2) The amount worked out under subsection (1) is to be rounded to the same number of decimal places as the CPI indexed rate was on the day before the indexation day (rounding up if the next decimal place is 5 or more).

Indexation factor

(3) The indexation factor for an indexation day is the number worked out using the formula:

(4) The indexation factor is to be worked out to 3 decimal places (rounding up if the fourth decimal place is 5 or more).

Effect of delay in publication of index number

(5) If the index number for the most recent reference quarter before the indexation day is published by the Australian Statistician on a day (the publication day) that is not at least 5 days before the indexation day, then, despite subsection (1), any replacement of a CPI indexed rate under subsection (1) happens on the fifth day after the publication day.

Effect of Customs Tariff alteration

(6) If a Customs Tariff alteration proposed in the Parliament proposes to substitute, on and after a particular day, a rate for a CPI indexed rate, treat that substitution as having had effect on and after that day for the purposes of this section.

Changes to CPI index reference period and publication of substituted index numbers

(7) Amounts are to be worked out under this section:

(a) using only the index numbers published in terms of the most recently published index reference period for the Consumer Price Index; and

(b) disregarding index numbers published in substitution for previously published index numbers (except where the substituted numbers are published to take account of changes in the index reference period).

Application of replacement rate

(8) If a CPI indexed rate is replaced under this section on a particular day, the replacement rate applies in relation to:

(a) goods imported into Australia on or after that day; and

(b) goods imported into Australia before that day, where the time for working out the rate of import duty on the goods had not occurred before that day.

Publication of replacement rate

(9) The Comptroller‑General of Customs must, on or as soon as practicable after the day a CPI indexed rate is replaced under this section, publish a notice in the Gazette advertising the replacement rate and the goods it applies to.

Definitions

(10) In this section:

base quarter means the June quarter or December quarter that has the highest index number of all the June quarters and December quarters that occur:

(a) before the most recent reference quarter before the indexation day; and

(b) after the June quarter of 1983.

CPI indexed rate means:

(a) an alcohol duty rate; or

(b) a fuel duty rate.

December quarter means a period of 3 months starting on 1 October.

indexation day means each 1 February and 1 August.

index number, for a quarter, means the All Groups Consumer Price Index number that is the weighted average of the 8 capital cities and is published by the Australian Statistician in relation to that quarter.

(1) Despite subsection 19(2), the amount to be worked out under subsection 19(1) in respect of an indexation day for a CPI indexed rate that is a fuel duty rate is to be rounded to 3 decimal places (rounding up if the next decimal place is 5 or more).

(2) For the purposes of section 19, determine the CPI indexed rate on the day before the indexation day as mentioned in subsection 19(1) on the assumptions that:

(a) the operation of subsection (1) of this section was disregarded in respect of all previous indexation days (if any); and

(b) subsection 19(2) provided for amounts worked out under subsection 19(1) in respect of those indexation days to be rounded to 5 decimal places (rounding up if the next decimal place was 5 or more).

(a) each fuel duty rate (other than a rate of duty mentioned in paragraph (b), (c) or (d)) is replaced by the rate of $0.386 per litre; and

(b) each rate of duty of $0.209 per kilogram in each of the following is replaced by the rate of $0.212 per kilogram:

(i) subheading 2711.11.00 in Schedule 3;

(ii) table item 97AA in Schedule 5;

(iii) table item 100AA in Schedule 6;

(iv) table item 99A in Schedule 7;

(v) table item 105A in Schedule 8;

(vi) table item 110 in Schedule 9;

(vii) table item 110 in Schedule 10;

(viii) table item 110 in Schedule 11; and

(c) each rate of duty of $0.10 per litre in each of the following is replaced by the rate of $0.101 per litre:

(i) subheading 2711.12.10 in Schedule 3;

(ii) subheading 2711.13.10 in Schedule 3;

(iii) table item 97AB in Schedule 5;

(iv) table item 97AC in Schedule 5;

(v) table item 100AB in Schedule 6;

(vi) table item 100AC in Schedule 6;

(vii) table item 99B in Schedule 7;

(viii) table item 99C in Schedule 7;

(ix) table item 105B in Schedule 8;

(x) table item 105C in Schedule 8;

(xi) table item 111 in Schedule 9;

(xii) table item 112 in Schedule 9;

(xiii) table item 111 in Schedule 10;

(xiv) table item 112 in Schedule 10;

(xv) table item 111 in Schedule 11;

(xvi) table item 112 in Schedule 11; and

(d) each rate of duty of $0.209 per kilogram in each of the following is replaced by the rate of $0.212 per kilogram:

(i) subheading 2711.21.10 in Schedule 3;

(ii) table item 97AD in Schedule 5;

(iii) table item 100AD in Schedule 6;

(iv) table item 99D in Schedule 7;

(v) table item 105D in Schedule 8;

(vi) table item 113 in Schedule 9;

(vii) table item 113 in Schedule 10;

(viii) table item 113 in Schedule 11.

(2) Subparagraphs (1)(b)(vii), (c)(xiii) and (xiv) and (d)(vii) have no effect at any time before the commencement of Schedule 1 to the Customs Tariff Amendment (Korea‑Australia Free Trade Agreement Implementation) Act 2014.

(3) Subparagraphs (1)(b)(viii), (c)(xv) and (xvi) and (d)(viii) have no effect at any time before the commencement of Schedule 1 to the Customs Tariff Amendment (Japan‑Australia Economic Partnership Agreement Implementation) Act 2014.

(1) For the purposes of sections 19, 19AAA, and 19AAB, a fuel duty rate is a rate of duty (except so much of a rate of duty as is calculated as a percentage of the value of goods) in the following:

(a) the rate column of a subheading in Schedule 3 specified in the table at the end of this section;

(b) the rate column of an item in the table in Schedule 5, 6, 7, 8, 9, 10, 11 or 12 that relates to a subheading in Schedule 3 specified in the table at the end of this section.

Fuel duty rates

2207.20.10

2707.10.00

2707.20.00

2707.30.00

2707.50.00

2709.00.90

2710.12.62

2710.12.69

2710.12.70

2710.19.16

2710.19.22

2710.19.28

2710.19.51

2710.19.52

2710.19.53

2710.19.70

2710.20.00

2710.91.16

2710.91.22

2710.91.28

2710.91.51

2710.91.52

2710.91.53

2710.91.62

2710.91.69

2710.91.70

2710.91.80

2710.99.16

2710.99.22

2710.99.28

2710.99.51

2710.99.52

2710.99.53

2710.99.62

2710.99.69

2710.99.70

2710.99.80

2711.11.00

2711.12.10

2711.13.10

2711.21.10

2902.20.00

2902.30.00

2902.41.00

2902.42.00

2902.43.00

2902.44.00

3817.00.10

3824.99.30

3824.99.40

3826.00.10

3826.00.20

(2) The reference in paragraph (1)(b) to the rate column of an item in the table in Schedule 10 has no effect at any time before the commencement of Schedule 1 to the Customs Tariff Amendment (Korea‑Australia Free Trade Agreement Implementation) Act 2014.

(3) The reference in paragraph (1)(b) to the rate column of an item in the table in Schedule 11 has no effect at any time before the commencement of Schedule 1 to the Customs Tariff Amendment (Japan‑Australia Economic Partnership Agreement Implementation) Act 2014.

(1) If the indexation factor for an indexation day is at least 1, each tobacco duty rate is, on that day, replaced by the rate of duty worked out using the formula:

Note: For tobacco duty rate see section 19AC. For indexation factor see subsections (3) and (5), for additional factor see subsection (6) and for indexation day see subsection (12).

(2) The amount worked out under subsection (1) is to be rounded to the same number of decimal places as the tobacco duty rate was on the day before the indexation day (rounding up if the next decimal place is 5 or more).

Indexation factor

(3) The indexation factor for an indexation day is the number worked out using the formula:

(4) The indexation factor is to be worked out to 3 decimal places (rounding up if the fourth decimal place is 5 or more).

(5) Despite subsection (3), treat the indexation factor for 1 September 2014, 1 September 2015, 1 September 2016, 1 September 2017, 1 September 2018, 1 September 2019 or 1 September 2020 as 1 if, on that day, it would otherwise be less than 1.

Additional factor

(6) The additional factor for an indexation day is:

(a) 1.125, if the indexation day is 1 September 2014, 1 September 2015, 1 September 2016, 1 September 2017, 1 September 2018, 1 September 2019 or 1 September 2020; or

(b) 1, for each other indexation day.

Effect of delay in publication of AWOTE amount

(7) If the AWOTE amount for the most recent reference quarter before the indexation day is published by the Australian Statistician on a day (the publication day) that is not at least 5 days before the indexation day, then, despite subsection (1), any replacement of a tobacco duty rate under subsection (1) happens on the fifth day after the publication day.

Effect of Customs Tariff alteration

(8) If a Customs Tariff alteration proposed in the Parliament proposes to substitute, on and after a particular day, a rate for a tobacco duty rate, treat that substitution as having had effect on and after that day for the purposes of this section.

Publication of substituted AWOTE amounts

(9) If the Australian Statistician publishes an estimate of full‑time adult average weekly ordinary time earnings for persons in Australia for a period for which such an estimate was previously published by the Australian Statistician, the publication of the later estimate is to be disregarded for the purposes of this section.

Application of replacement rate

(10) If a tobacco duty rate is replaced under this section on a particular day, the replacement rate applies in relation to:

(a) goods imported into Australia on or after that day; and

(b) goods imported into Australia before that day, where the time for working out the rate of import duty on the goods had not occurred before that day.

Publication of replacement rate

(11) The Comptroller‑General of Customs must, on or as soon as practicable after the day a tobacco duty rate is replaced under this section, publish a notice in the Gazette advertising the replacement rate and the goods it applies to.

Definitions

(12) In this section:

AWOTE amount, for a quarter, means the estimate of the full‑time adult average weekly ordinary time earnings for persons in Australia for the middle month of the quarter published by the Australian Statistician in relation to that month.

base quarter means the June quarter or December quarter that has the highest AWOTE amount of all the June quarters and December quarters that occur:

(a) before the most recent reference quarter before the indexation day; and

(a) each rate of duty that was, on 31 January 2015, a rate of $0.212 per kilogram in each of the following is replaced by the rate mentioned in subsection (2) for this paragraph:

(i) subheading 2711.11.00 in Schedule 3;

(ii) table item 97AA in Schedule 5;

(iii) table item 100AA in Schedule 6;

(iv) table item 99A in Schedule 7;

(v) table item 105A in Schedule 8;

(vi) table item 110 in Schedule 9;

(vii) table item 110 in Schedule 10;

(viii) table item 110 in Schedule 11; and

(b) each rate of duty that was, on 31 January 2015, a rate of $0.101 per litre in each of the following is replaced by the rate mentioned in subsection (2) for this paragraph:

(i) subheading 2711.12.10 in Schedule 3;

(ii) subheading 2711.13.10 in Schedule 3;

(iii) table item 97AB in Schedule 5;

(iv) table item 97AC in Schedule 5;

(v) table item 100AB in Schedule 6;

(vi) table item 100AC in Schedule 6;

(vii) table item 99B in Schedule 7;

(viii) table item 99C in Schedule 7;

(ix) table item 105B in Schedule 8;

(x) table item 105C in Schedule 8;

(xi) table item 111 in Schedule 9;

(xii) table item 112 in Schedule 9;

(xiii) table item 111 in Schedule 10;

(xiv) table item 112 in Schedule 10;

(xv) table item 111 in Schedule 11;

(xvi) table item 112 in Schedule 11; and

(c) each rate of duty that was, on 31 January 2015, a rate of $0.212 per kilogram in each of the following is replaced by the rate mentioned in subsection (2) for this paragraph:

(i) subheading 2711.21.10 in Schedule 3;

(ii) table item 97AD in Schedule 5;

(iii) table item 100AD in Schedule 6;

(iv) table item 99D in Schedule 7;

(v) table item 105D in Schedule 8;

(vi) table item 113 in Schedule 9;

(vii) table item 113 in Schedule 10;

(viii) table item 113 in Schedule 11.

(2) Subject to subsection (3), the rate is:

(a) for paragraph (1)(a):

(i) $0.2644 per kilogram; or

(ii) if the indexed rate worked out under subsection (3) is greater than $0.2644 per kilogram—that indexed rate; and

(b) for paragraph (1)(b):

(i) $0.126 per litre; or

(ii) if the indexed rate worked out under subsection (3) is greater than $0.126 per litre—that indexed rate; and

(c) for paragraph (1)(c):

(i) $0.2644 per kilogram; or

(ii) if the indexed rate worked out under subsection (3) is greater than $0.2644 per kilogram—that indexed rate.

(3) To work out the indexed rate, index the rate mentioned in subparagraph (2)(a)(i), (2)(b)(i) or (2)(c)(i) (as applicable) on 1 February 2015 under section 19, on the assumptions that:

(a) the rate is a CPI indexed rate for the purposes of that section; and

(b) the amount of that rate on the day before 1 February 2015 is the amount set out in subparagraph (2)(a)(i), (2)(b)(i) or (2)(c)(i) (as applicable).

(4) Subparagraphs (1)(a)(vii), (b)(xiii) and (xiv) and (c)(vii) have no effect at any time before the commencement of Schedule 1 to the Customs Tariff Amendment (Korea‑Australia Free Trade Agreement Implementation) Act 2014.

(5) Subparagraphs (1)(a)(viii), (b)(xv) and (xvi) and (c)(viii) have no effect at any time before the commencement of Schedule 1 to the Customs Tariff Amendment (Japan‑Australia Economic Partnership Agreement Implementation) Act 2014.

(a) goods consist of a container and the contents of the container; and

(b) those contents would, if they were manufactured or produced in Australia, be subject to duty of Excise under the Excise Tariff Act 1921; and

(c) under the Interpretation Rules, the tariff classification under which the goods are classified is the tariff classification under which the container would be classified if it were imported separately;

the duty in respect of the goods is equal to the sum of the amount of the duty that would be payable in respect of the container if it were imported separately and the amount of the duty that would be payable in respect of the contents if they were imported separately.

(2) Despite the fact that goods were imported into Australia before 1 July 1996, duties of Customs are not payable in respect of those goods under an Act repealed by this Act if duties of Customs are imposed on those goods by section 15.

(3) Subject to subsection (4), the Customs Tariff Act 1987 as in force immediately before 1 July 1996 is taken to have been amended in accordance with Customs Tariff Proposals introduced into the House of Representatives in 1995 or 1996.

(4) If, before 1 July 1996, either House of the Parliament, under a motion on notice, passes a resolution that subsection (3) is not to apply to particular Customs Tariff Proposals referred to in that subsection and specified in the resolution, that subsection does not apply to the Proposals so specified.

Classification of goods in Schedule 3 shall be governed by the following principles:

1. The titles of Sections, Chapters and sub‑Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisions:

2. (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this Rule), presented unassembled or disassembled.

(b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of Rule 3.

3. When by application of Rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows:

(a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.

(b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

(c) When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.

4. Goods which cannot be classified in accordance with the above Rules shall be classified under the heading appropriate to the goods to which they are most akin.

5. In addition to the foregoing provisions, the following Rules shall apply in respect of the goods referred to therein:

(a) Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for long‑term use and presented with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith. This Rule does not, however, apply to containers which give the whole its essential character;

(b) Subject to the provisions of Rule 5(a) above, packing materials and packing containers presented with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods. However, this provision is not binding when such packing materials or packing containers are clearly suitable for repetitive use.

6. For legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related Subheading Notes and, mutatis mutandis, to the above Rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this Rule the relative Section and Chapter Notes also apply, unless the context otherwise requires.